Analyst Insight: Dell's Secret to Growth

Dec 07 1998

By Matt Sargent

The latest research shows Dell is making dramatic gains right where Compaq and IBM initially fostered their PC business: the large-enterprise market. Preliminary results from ZD Market Intelligence show that during the third quarter Dell was the No. 1 provider of new PCs to companies with over 500 employees.

Though Compaq and IBM still have a greater installed base of PCs than Dell at these companies, current buying trends suggest that the market may shift quickly in Dell's favor. The impact of such a loss cannot be underestimated: Large enterprises provide high profit margins and huge sales Part of Dell's success can be attributed to the company's "Premier Pages" program - which tracks purchases and recommends new equipment to Dell's large business customers through individual Web sites. Ultimately, the computer seller's one-to-one customer interaction has enabled it to stay close to its customers and win business.

Matt Sargent is a senior analyst at ZD Market Intelligence.